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VN-Index loses gains on foreign investor disinterest
The VN-Index reversed some of Monday's gains and closed back to 501 points yesterday, a decline on the day of 0.40 percent. The value of trades on the HCM City Stock Exchange climbed to VND1.6 trillion (US$84.2 million), however, on a total volume of 42.7 million shares.
Steel producer Huu Lien Asia (HLA) became the most active share with 2.7 million traded, thanks to a forecast of rising steel prices in March, made by the Viet Nam Steel Association.
News of steel prices hitting VND600,000 per tonne this month encouraged steel stocks generally.
Dai Viet Securities Company analysts noted this as symptomatic of a new trend whereby investment was flowing to companies in a position to benefit from economic policy changes. Another clue was the reaction of banking and energy shares on Monday to news of new policies on interest rates and electricity rates.
A sell-off of banking shares, meanwhile, along with foreign investor disinterest in the market this week, snapped the VN-Index's three-day streak of gains.
Foreign investors were net sellers for the fifth straight session yesterday, selling off 1.9 million shares on the southern bourse.
The HCM City exchange yesterday also welcomed its 214th listing, by the Southern Logistics Company (STG). STG shares closed unchanged on their opening day at VND24,000 per share, with a volume of just 10 shares out of 8.3 million listed.
On the Ha Noi Stock Exchange, the HNX-Index also headed south by 0.52 percent, ending its session at 165.41 points. Activity rose to 25.3 million shares, worth a total of VND822.7 billion ($43.3 million), as Kim Long Securities Company (KLS) posted an impressive volume of 3.7 million shares.
Foreign investors were net buyers in Ha Noi but by a slender volume of just 340,600 shares.
Nguyen Thanh Binh, Head of Analysis at APEC Securities Company, said in weekly report that stock markets were treading water within a tight range due to economic circumstances which were discouraging to investors in the short term and had become a barrier to a bull market.
"However, basic factors of stocks and optimistic economic prospects will beef up trading soon," Binh predicted.
Binh recommended a 3-6 month investing strategy focusing on property, raw materials and hydroelectric stocks.
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